Essays on political instability: Measurement, causes and consequences

In political economy, the concept of political instability plays a prominent role as it raises uncertainty with respect to future institutions and economic policies, thereby affecting the incentives of e.g. households, firms, and politicians. This dissertation contains four quantitative studies on the measurement , causes and consequences of political instability. The research questions that are addressed are: how should political instability be measured? Does political instability hamper economic growth? Do democracy and globalization in the presence of a market-dominant minority leasd to ethnic violence? Does terrorism affect the instability of governments?